Standard Life Investments (SLI) has entered the Italian market with the acquisition of a 104,000 m[sup]2[/sup] logistics warehouse development at Rolo in Northern Italy. The property investor said it has joined forces with Panattoni Europe to acquire the development, which has a total end value of more than EUR 567 mln. Purchased on behalf of its European Property Growth Fund (EPGF), the property brings to 12 the number of European countries in which SLI has direct commercial property interests. The transaction was carried out via SLI's Paris office which opened last year. The financial details of this acquisition were not disclosed.
Standard Life Investments (SLI) has entered the Italian market with the acquisition of a 104,000 m2 logistics warehouse development at Rolo in Northern Italy. The property investor said it has joined forces with Panattoni Europe to acquire the development, which has a total end value of more than EUR 567 mln. Purchased on behalf of its European Property Growth Fund (EPGF), the property brings to 12 the number of European countries in which SLI has direct commercial property interests. The transaction was carried out via SLI's Paris office which opened last year. The financial details of this acquisition were not disclosed.
With the fund's available equity now fully committed to 32 properties in 10 European countries, SLI said it is now in the process of raising a new, third tranche of equity from investors across the globe. The current value of the fund is approximately EUR 5.8bn.
'Italy presents us with a strong investment opportunity because it is experiencing a consistent and rising demand for high quality logistics buildings to meet current occupier requirements. Panattoni is an experienced developer in this sector with whom we already have a strong relationship, following a number of joint ventures in Poland', said Will Fulton, fund manager of EPGF. The fund has delivered an annualised total return over the last three years of 18.5%.
Launched in 2001, EPGF was restructured in June 2005 due to demand from existing partners to extend the life of the fund and give it greater flexibility. As a result, it moved from a closed-end, finite life structured fund to an innovative open-ended unitised structure. The fund targets a high quality diversified portfolio of commercial properties across Europe, with a focus on mature, developed Eurozone markets. The fund invests predominantly in the office, industrial/logistics and retail sectors with a view to maximising growth by active asset management.
SLI currently has over 3 million sq ft of logistical space under construction in Central Europe, with over 2 million of this already pre-let.
